RegTech Can Make Regulation and Compliance More Effective

A new report from Deloitte details how agile regulatory technology – RegTech – can help companies better understand and manage their risks. “RegTech” refers to using new technologies in the financial services industry to improve operational and customer engagement capabilities by leveraging analytics, data management and digital functions, the report said.

“While the name is new, the marriage of technology and regulation to address regulatory challenges has existed for some time with varying degrees of success,” said Deloitte. “Increasing levels of regulation and a greater focus on data and reporting has, however, brought the RegTech offering into greater focus, creating more value for firms that invest in these solutions.”

Integration – short timeframes to get solutions up and running.

Another defining feature: solutions tend to be cloud-based. This means “that data are remotely maintained, managed and backed up,” said Deloitte. Cloud-based solutions provide the following key advantages:

Cost – pay only for what you use.

Flexibility – customized control over access to and sharing of data.

Security – data are encrypted during transmission and while at rest.

According to Deloitte’s Sean Smith, “In the short term, RegTech will help firms automate the more mundane compliance tasks and reduce operational risks associated with meeting compliance and reporting obligations. In the longer term, it will empower compliance functions to make informed risk choices based on data-provided insight about the compliance risks they face and how they mitigate and manage those risks.”

RegTech Can Make Regulation and Compliance More Effective was last modified: December 14th, 2017 by Thomas Ressler